Calif. Attorney General Urges Icann to Reject Dot-Org Transfer

California’s attorney general wants the internet’s most prominent regulatory group to block the transfer of the dot-org domain registry to the private-equity firm Ethos Capital.

In an April 15 letter to the Internet Corporation for Assigned Names and Numbers, Attorney General Xavier Becerra urged the group to reject a proposed change in the dot-org registry agreement that would grant Ethos Capital control over the Public Interest Registry, a Virginia-based nonprofit that has managed the dot-org registry since 2002.

The letter criticized the proposed transfer of PIR to Ethos Capital on multiple fronts. It raised questions about the viability of PIR under Ethos’s control, criticized the proposal for lack of transparency, and questioned why the control of PIR was not subject to a public bidding process — a key complaint among nonprofits opposed to the transfer.

“What is at stake is the transfer of the world’s second largest registry to a for-profit private-equity firm that, by design, exists to profit from millions of nonprofit and noncommercial organizations,” reads the letter.

In a statement, Ethos officials said they have been working closely with the California Attorney General to address concerns, “including actions we’ve taken that prove our intent to be a valued partner of PIR and dot-org.”

Ethos officials highlighted their pledge to limit price increases on dot-org domains and create a Stewardship Council that will have oversight and veto power over some PIR decisions. Critics have said those promises don’t go far enough.

Because Icann is headquartered in California, Becerra’s office has been following the proposed transfer of dot-org closely. Earlier this year, his office issued a series of questions to Icann about the sale, resulting in Icann delaying a decision on the matter. Becerra’s latest letter came less than a week before Icann is expected to issue a decision about the transfer of PIR to Ethos, on April 20.